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Pakistan on Friday received $688 million from the United States on account of Coalition Support Fund (CSF), a fund created for reimbursing expenses incurred by Pakistan on counter-insurgency operations. This is the second such payment under CSF during the current fiscal year: an instalment of over a billion-dollar was received in August this year. The chief spokesperson for the State Bank, Syed Wasimuddin, said.

"On Friday morning, the State Bank received an amount of $688 million from the US under the Coalition Support Fund." The amount was released a day ago by the US authorities and transferred to SBP account on December 28, he added. Pakistan received $1.118 billion on August 2 this year after it restored Nato supplies after a formal apology from the US.

This payment was received after an 18-month gap: the country last received $633 million in December 2010. The payment was delayed after the suspension of Nato supplies after the Salala incident and the ensuing tension between Pakistan and the US. CSF claims worth billions of dollars are still pending with the US. Pakistan has cumulatively received $1.806 billion during this fiscal year.

Sources said that Pakistan's forex reserves are rapidly depleting following slow foreign inflows and rising foreign debt payments, adding that the current payment under the CSF would help build up the reserves, which declined to $13.378 billion in December this year, down from $15.236 billion in June this year.

Since 2004, Pakistan has received approximately $10 billion (including the current payment) on account of CSF. According to the CSF payment procedure, Pakistan regularly submitted its claims to a US military brigadier in its local embassy, who reconciled these bills and sends them to the Pentagon for clearance.

Copyright Business Recorder, 2012


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